The cost to a merchant of changing the price of a product is called a:

The term that describes the cost associated with changing the price of a product is known as "menu cost." This concept originates from the traditional practice of having physical menus in restaurants that need to be printed and updated whenever prices change. In a broader economic context, menu costs encompass the various expenses incurred by a business when they adjust prices, including updating price tags, printing new marketing materials, and the operational inefficiencies associated with implementing the new pricing.

Understanding menu costs is important for businesses as they can influence pricing strategies and decision-making processes. If the costs associated with changing prices are too high, businesses may be less likely to adjust prices frequently, even if market conditions warrant it. This reflects how such costs can impact supply and demand dynamics in the marketplace.